In this section, unless the context otherwise requires,—

Where at any time after the commencement of this section any invitation is issued to the public to deposit money with or to lend money to any company, the invitation shall, in whatever form it is issued, be deemed for the purposes of this Act to be a prospectus issued by the company inviting persons to subscribe for debentures of the company; and all the provisions of this Act and all other enactments and rules of law as to the contents of prospectuses and to liability in respect of statements in and omissions from prospectuses, or otherwise relating to prospectuses, shall apply and have effect accordingly, so far as they are applicable.

Every advertisement designed only to make the public aware of any such invitation, or of any opportunity to deposit money with or lend money to any company, whether by application or offer, shall state that forms of application or offer, together with a prospectus, may be obtained at a place specified in the advertisement.

Where any such invitation or advertisement is issued, and the deposits or loans to which it relates are not to be secured by a charge or charges on the company’s undertaking or on any of the company’s assets, any statement in the invitation or advertisement relating to documents to be issued evidencing such deposits or loans shall refer to those documents as unsecured deposit notes or unsecured notes, or by some other description which includes the word ‘unsecured’, and shall not refer to the documents as debentures.

Subject to the provisions of subsection (7) of this section, no company shall, at any time after the commencement of this section, accept a deposit or loan of money from any person unless—

Subject as aforesaid, where at any time after the commencement of this section any company accepts any deposit or loan of money from any person, and the repayment of the money is not to be secured by a charge on the company’s undertaking or on any of the company’s assets, the company shall issue to him as evidence thereof a document acknowledging the company’s indebtedness in respect of the deposit or loan. The document shall be described on its face as an unsecured deposit note or an unsecured note, or shall bear on its face some other description which includes the word ‘unsecured’, and shall not be described in any part of it as a debenture.

This section shall not apply to any deposit with or loan to any company if it is shown that the deposit or loan was not made in response to an invitation issued to the public, and was not made in response to an advertisement designed to make the public aware of any such invitation or of an opportunity to deposit money with or lend money to the company.

If any invitation or advertisement or document is issued in contravention of this section, or if any company acts in contravention of or fails to comply in any respect with any of the provisions of this section, the company and every person who is knowingly a party to the contravention or non-compliance shall be liable to a fine not exceeding five hundred pounds.”

Section 48a of this Act (which was inserted by section 2 of the Companies Amendment Act 1960) shall apply in respect of every company incorporated outside New Zealand as if the references in the said section 48a to a company were references to a company incorporated outside New Zealand, and as if the references in that section to this Act were references to this Part of this Act.”